You have just purchased a rental property and you want to rent it out ASAP. Trying to figure out what to charge can be overwhelming. How much is the right amount?
Try this method to make things easier:
Step 1: Do your research
Look at similar rentals in the same area as yours. Look at the property, how many bedrooms and bathrooms does it have? See what other amenities like dishwashers, waste disposal, heating/cooling, spa pools etc they have that may drive up the rent. Check online as well as Real Estate offices.
Step 2: List the benefits
How close its your property to shops and schools? Can your tenants leave their car at home and walk everywhere? Does it have good access to public transport? Tenants will pay top dollar for a beautiful view. Coming home to a view of the ocean or other gorgeous setting will give you more of an ROI than a view into the neighbours bathroom.
Step 3: Look at the layout
It’s obvious to charge more for a 3 bedroom over a 1 bedroom. But what about charging more for a 1 bedroom 100 sq m rental over a 1 bedroom 80 sq m rental? This will be where your research will come in, what size/price/rooms comparable research have you come across?
Is there are natural flow to your place? When you walk in the front door, are you walking into the master bedroom? Or do you have to walk through the whole house to get to the tiny toilet which was an addition out the back? Are their quirks to the house that potential tenants will have issues with? Can you charge them a reasonable rate with the quirks, or will you have to take a hit on the rent to get it tenanted.
Step 4: Make a few updates
Have you recently renovated the property? Even simple alterations can increase the amount you can rent your place out for, so if you haven’t it may pay to have a few updates done. I’ve talked about ways you can increase the value of your property here. If you do this, you’ll be able to charge more.
What other steps would you add to this method?